Ethereum: Can the number of transactions per second overwhelm the network?
As the second largest cryptocurrency in the world for market capitalization, Ethereum (ETH) has achieved great progress in recent years. With its intelligent contract platform, decentralized finances (DEFI) and game ecosystems, Ethereum has become a center for innovation and experimentation. One of the key features that distinguishes Ethereum from other cryptocurrencies is its ability to handle a large volume of transactions per second (TPS).
However, as Ethereum’s popularity grows, there are concerns that the network could be overwhelmed by the large number of transactions that processes daily. In this article, we will explore why TPS could become a limitation for Ethereum and what steps the team is taking behind the network to mitigate these problems.
What is TPS?
TPS refers to the rate to which Ethereum can process transactions in its network. A single transaction generally involves two parts that exchange value in exchange for some value, such as gas or cryptocurrency. To accommodate a large volume of transactions, the Ethereum (Pow) work test algorithm, which has been Bitcoin’s backcoin column and other cryptocurrencies, requires significant computational power.
Why TPS becomes a limitation
As the number of users in Ethereum increases, the network needs to process a growing amount of data. According to estimates, if Ethereum reached 100 TPS, it would require around 1 million CPU to run (CPU means a central processing unit). This is equivalent to the processing power required by more than 10 million desktop computers that are executed simultaneously.
Currently, the average transaction time in Ethereum is around 20 seconds. To accommodate a faster transaction time, as less than 2 seconds, it would require a huge increase in computational power, which could lead to significant problems of scalability and potentially even lead to the congestion of the network.
Ethereum response
To address this problem, the Ethereum team has been exploring alternative consensus algorithms that can handle higher TPS rates. One of these alternatives is the Ahizantine (POS) test algorithm, also known as Byzantine Fallas (BFT).
Take test: A new consensus algorithm?
In 2017, Vitalik Bugerin, the creator of Ethereum, introduced Post as an alternative to Bitcoin Pow. The idea behind Pos is that the validators are chosen according to their “stake” or holdings instead of a computational power. This approach eliminates the need for miners to solve complex mathematical problems to validate transactions.
While the POS has some potential benefits, such as lower energy consumption and faster transaction times, it also requires significant changes in Ethereum architecture. One of the key challenges is to ensure that the decentralized government system of the network remains stable and safe even with a high TPS rate.
Other options
In addition to post, other alternatives are being explored, including:
* Proof of a delegate (DPOS): A variant of POS that allows users to vote for validators instead of simply validating transactions.
* Fragmentation:
A mechanism to divide the network into smaller and more resistant pieces that can handle higher TPS rates.
Conclusion
While the current Ethereum TPS rate remains relatively high, concerns about scalability and network congestion are valid. The team behind Ethereum is working hard to address these problems by exploring alternative consensus algorithms and other solutions.
However, it is essential to keep in mind that the Ethereum scale will require a significant investment in infrastructure updates, such as fragments and parallel processing. Only time will say if these efforts bear fruit and if the network can maintain its current level of adoption and innovation.
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